By: Ryan Lynagh, Nick Quaid. and Andrew Chunka
S Apple is a multinational corporation that creates
consumer electronics, personal computers, computer
software, and commercial servers, and is a digital
distributor of media content.
S Steve Jobs and Steve Wozniak created Apple Computer
on April 1, 1976 and incorporated the company on
January 3, 1977 in Cupertino, California.
S With the introduction of the successful iPod music player
in 2001 and iTunes Music Store in 2003, Apple
established itself as a leader in the consumer electronics
and media sales industries, leading it to drop "Computer"
from the company's name in 2007.
S As of 2012, Apple is the largest publicly traded
corporation in the world by market capitalization, with an
estimated value of US$626 billion as of September 2012.
S Apple Inc.'s Market cap is larger than that
of Google and Microsoft combined.
S Apple has over 80,000 employees worldwide
S Apple sold 340,000 iPhones per day in 2012
S Apple earns $300,000 US dollars per minute
S Everything said to Siri is sent to Apple and stored
S Apple’s auditors are Ernst & Young LLP.
Formula for Success
S Strategy to achieve greatness: Apple is a product
based company. They believe there product induces a
universal approach. Living through the Apple products is
obtainable by the common man.
S Having the reputation Apple does, it allows them to
expand their product line and gives them an opportunity
to enter the market place already with a plan. They come
to the market with there product and already expect
Separates Good from Great
S What makes a company special is the way they build
their brand loyalty.
S The research shows how the iPhone has commanded
more loyalty at the top of the market, even as Google’s
operating system continues to outpace the competition
overall. Samsung customers were more likely to be
entering the smartphone market for the first time, with
37% switching from a basic device, compared to 26% of
The Bigger Picture
S Goals: “Our goal, in a nutshell, is to obtain stellar
products and services within tight timeframes, at a cost
that represents the best possible value to our customers
and shareholders. If that sounds like a daunting task, it’s
the same one we assign ourselves.” – Apple Website
S Provide top quality, and expect top dollar. Each Apple
store wants to provide individual care.
S Hewlett-Packard Co.- global provider of products,
technologies, and software such as HP Computer
S Intel Corp.- designs and manufactures digital technology
platforms, which consist of a microprocessor and chipset,
hardware, software, and services.
S Oracle Corp.- develops, manufactures, markets, hosts
and supports database and middleware software,
application software, cloud infrastructure, hardware
systems and related services, engineered to work
together in cloud-based technology environments.
Top Competitors Continued..
S Apple’s major competition when it comes to computers
are Dell, Hewlett-Packard (HPQ), Acer and Lenovo.
S Apple competes with companies like Samsung, Sony,
HTC, Lenovo, and many others in the mobile phone
iPhone Accounting Issue
S In 2010, the FASB changed their rules allowing cellular
providers to book revenue when a product is sold, rather
than booking it as revenue and profit from sales over
S This allowed Apple accountants to receive cash from
iPhone sales immediately, rather than over the 2 years
each customer is under contract of the phone.
Effects of Rule Change
S Sales were immediately boosted the following quarter to
$15.7 billion, from an expected $12.1 billion
S Total Assets dropped $6.4 billion
S Total Liabilities dropped $10.1 billion
S Added $3.8 billion to Shareholder Equity
Summary of Cash Flows
S Net Operating Cash Flow- $59.71 billion
S Net Investing Cash Flow- $22.58 billion
S Net Financing Cash Flow- $37.55 billion
S According to Apple’s 2014 Statement of Cash Flows
S "Apple Facts: 26 Facts about Apple You Didn't Know.”.
N.p., n.d. Web. 22 Apr. 2015
S “Apple Inc.” Mergent Online. Web. 22 Apr. 2015.
S Apple Inc. Q1 2015 Unaudited Summary Data (n.d.): n.
S Phillips, Matt. "Apple Earnings: The IPhone Accounting
Issue." MarketBeat RSS. N.p., n.d. Web. 22 Apr.